Strategic Planning
and Goal Setting
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The Rosenberg Associates
Marc Rosenberg, CPA, President
 23 years consulting to CPA firms
 Consultant, author and speaker
 700 client firms from coast to coast
 Top 100 Most Influential People in Acting
Profession – Accounting Today
- 7 consecutive years
 Named one of the most recommended
CPA firm consultants by INSIDE Public Accounting
THE
ROSENBERG ASSOCIATES LTD.
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The Rosenberg Associates
1000 Skokie Blvd. Suite 555
Wilmette, IL 60091
Phone: 847-251-7100
Fax: 847-251-4622
marc@rosenbergassoc.com
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Rosenberg is active with CPA firms:
Retreat facilitation
Partner compensation & retirement
Succession planning
Mergers
Strategic planning
Practice management reviews
Partner relations and conflict
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
Titles
Also known as “white papers”
1. How to Bring in New Partners

Our proprietary consulting
methods, handouts, checklists,
2. How to Negotiate a CPA Firm Merger
and intellectual capital are
captured in each of these
monographs
3. How to Operate a Compensation
Committee
4. What Really Makes a CPA Firm Profitable?
5. Guide to Planning the Firm Retreat
6. Effective Partner Relations and
Communication
7. Strategic Planning & Goal Setting for Results
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The Rosenberg Associates
The Rosenberg MAP Survey – Accounting
Today calls it “generally accepted as the
barometer for CPA firm practice
management.”
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The Marc Rosenberg Blog
• Launch: April 2011
• Frequent posts about key CPA firm
practice management topics
• Opportunity to stay on top of key
CPA issues
• Subscribe to receive emails
notifying you of new blog posts
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Where Marc goes in his free time
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Where Marc goes in his free time
MVP
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Disturbing the Present
“Challenging the status quo when
you have been successful is
difficult. If you think you will
be successful running your
business in the next 10 years
the way you did the last 10
years, you’re out of your mind.
To succeed, we must disturb
the present.”
Roberto Goizueta
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ALL ORGANIZATIONS PLAN
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TAKEAWAY
MVP
When organizations:
• Create a vision
• Reduce it to goals
• Put both in writing
• Establish accountability
…they are more likely to achieve their vision.
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Why CPA firms shun
strategic planning
1. Not sold on it.
2. No time.
3. Affluence
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Before getting started…
MVP
“Great organizations did not first figure out where
to drive the bus and then get the people to take
it there. Instead, they first got the right people
ON the bus, got the wrong people OFF the bus
and then figured out where to drive it.”
Jim Collins- Good To Great
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Crash Course
Strategic planning
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What is strategic planning?
The PROCESS of examining:
• Where you are now
• Where you want to be
• How you will get there
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With strategic planning:
•
•
•
•
Priorities defined
Proactive vs. reactive
Everyone pulls in same direction
The firm attracts committed people
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MVP
Strategic Planning:
3 Main Phases
1. Brainstorming
2. Goal setting
3. Execution
10%
20%
70%
Extra credit: Create core values
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Two Day Retreat
Day 1 - Morning
Brainstorming
Create vision
Day 1 afternoon
Day 2 morning
Prioritize
Firm wide goals
Drill down
Day 2-early
afternoon
What’s going to make us do it?
Day 2 – mid pm
Accountability
Day 3 – late pm
Core values (advanced)
After the retreat:
•Assign goals to individuals
•Monitor progress
•Execute
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Strategic planning is a journey,
not a destination
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“When you come
to a fork in the
road, take it.”
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“You’ve got to be careful if
you don’t know where you’re
going ‘cause you might not get
there.”
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Management of a CPA Firm: The Highest Level
VISION
FIRM GOALS
Leadership
Operations
PARTNER GOALS
ENGINES
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Partner Comp
Accountability
Management of a CPA Firm: The Highest Level
VISION
FIRM GOALS
PARTNER GOALS
Leadership
Operations
Partner Comp
ENGINES
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Accountability
CPA Firm Strategic Planning Cycle
Time of Year
Step In The Process
September
Begin planning the process
Late Oct/early Nov
Convene strategic planning retreat; set goals for next year.
Nov/early Dec
1. Develop individual partner goals-linked with the vision.
2. Complete work on current year goals.
Mid-Dec/early Jan
Complete next year’s plan.
January-April
Tax season
May to
Implementation
December Implementation
September
Start on next year’s plan.
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Implementation
Implementation
Mission Statements
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Mission Statements
• Statement of overarching purpose
• Should be motivating and distinctive
• Its adoption should lead to change in
performance and behavior…or else it has little
or no value.
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Some of my Favorite
Mission Statements
“To make millions happy.”
“To support people night and day.”
“Number one in share of stomach.”
E pluribus unum.
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Sample CPA Firm
Mission Statement
Our mission is to provide specialized and
technologically advanced services to our
clients, while providing our people the
environment to fulfill their personal and
professional goals.
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Sample CPA Firm
Mission Statement
Our primary goal is to provide quality services to
its clients in accordance with the best
standards of the profession.
Our Firm is committed to a standard of
excellence and to meeting the specific needs
and concerns of each client we serve.
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What can we conclude about the mission
statements of CPA firms?
• Motivating and distinctive?
• Do you think these statements will lead to
changes in performance and behavior?
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Mission Statements For Most CPA
Firms Are a WASTE OF TIME
•
•
•
•
CPA firms are not all that different.
Great for wallpaper in your lobby.
Nice in your web site.
Benefits not worth the time.
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Vision Statement
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Vision Statement
A series of high impact statements that say
where you want to be in 5 years (most of
which are things you have not yet completely
attained)
“Setting BHAGs and going after them.” (Jim
Collins’ Built To Last)
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Brainstorming Session
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A conversation about the future
If we were talking 5 years from now, what has to
have happened over those 5 years for you to
feel happy with the firm’s progress?
1.
2.
3.
4.
5.
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Food For Thought
Trends in
the
Profession
Best
Practices
External Factors
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Food For Thought
Strategic
Issues
Best
Practices
External
Factors
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Strategic Issues
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•
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•
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•
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•
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Where profession is headed
Our strengths & weaknesses
What partners want to earn
What is our market?
How are we different?
What is our image and reputation?
Services to provide; specialties and niches
Our talent (people)
Succession plan
Marketing plan
Mergers
Service quality
Technology
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Food For Thought
Strategic
Issues
Best
Practices
External
Factors
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Best Practices
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Practice development
Pricing
Management and leadership
Franchised procedures
Partners leverage, delegate
Make the firm a great place to work
Partners are good bosses
Good partner relations
Partner accountability
Partners are not clones of each other
Performance-based partner compensation
Benchmarking
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Food For Thought
Strategic
Issues
Best
Practices
External Factors
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External Factors
•
•
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The economy
Demographics
Supply of staff
World events in general
World events professionally (i.e., IFRS)
Government; laws; regulation
Competition
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Sample Vision Statement
•
•
•
•
•
•
15% annual growth.
Take health care consulting national.
Develop specialties in construction and hospitals.
Move to a corporate governance structure.
Be the employer of choice in our market.
Develop business valuations and merger &
acquisition services.
• Develop 5 new partners in next 5 years.
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Goal Setting
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Drill Down on Vision
Drill down on each
What are the specific
things we will do to
achieve each goal?
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Example of drilling down
Goal: Develop a construction niche.
Action items:
1.
2.
3.
4.
5.
6.
7.
Identify a champion.
Form a niche team. Specify names.
Create a marketing plan.
Deliver specialized training to team members.
Join a construction trade association.
Speak at a major construction conference.
Merge in a firm with a construction niche.
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Core Values
If the VISION is the heart of a CPA firm,
the core values are its soul…
…CORE VALUES define a firm’s culture by
clarifying its rules of behavior.
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Ways that firms define core values
• Attitudes and beliefs that define our culture.
• Values used to help us make tough decisions.
• What we stand for; what we hold dear.
Acid tests
1. Partners should be talking about and referring to
core values all the time.
2. VIOLATIONS ARE NEVER TOLERATED OR IGNORED.
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Examples of Core Values
1.
2.
3.
4.
5.
6.
7.
Exceed client expectations.
No personal agendas over the team’s interest.
Everyone required to learn new skills.
Partners set an example for the staff.
Everyone does their share and a little bit more.
We won’t tolerate lack of respect, politicking.
#1 job of a partner: mentor/develop staff.
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Why creation of core values is
OPTIONAL for most firms
“In a corporation, when
the President says turn
right, everyone turns
right. But with a group
of partners, when the
MP says turn left, one
person turns left, one
person turns right and
one gets up and walks
out of the room.”
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Why creation of core values is
OPTIONAL for most firms
1. No real impact in the firm.
2. The firm tolerates transgressions (no backbone):
• Hoarding clients and billable hours.
• Disrespectful treatment of staff.
• “I have no time to mentor.”
• Reluctance to discipline the rainmaker.
3. “Motherhood and apple pie” adjectives:
Ethical
Professionalism
Integrity Trust
Honesty
Quality
Raise your hand if you don’t believe in these.
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How to Create and Manage
A Goal Setting Program
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Success in achieving goals rises
DRAMATICALLY when goals are in
writing instead of “in mind.”
MVP
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MVP
Best Practices:
Partner Goal Setting
1. Goals should be SMART:
S
Specific
M Measurable
A
Attainable
R
Realistic
T
Time bounded
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Good Words and Bad Words
Use action words
•
•
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•
Increase
Create
Sell
Reduce
Join
Avoid vague words
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Communicate
Promote
Instill
Consider
Conceptualize
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Best Practices:
Partner Goal Setting
2. Link individual goals with your strategic plan.
Vision
Partner 1
Growth
X
People
Processes
Niches
Partner 2
Partner 3
Partner 5
X
X
X
Partner 4
X
X
X
Training
X
X
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X
Best Practices:
Partner Goal Setting
3. Goals should never be “given” to someone;
let them draft the goals first.
4. Short list.
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Best Practices:
Partner Goal Setting
5. Communication throughout the year:
The best way to ensure the failure of a goals program:
• Create on Jan. 1
• No one talks to the person for 12 months
• On Dec. 31: “Well, how did you do?”
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Best Practices:
Partner Goal Setting
6. Coaching.
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Best Practices:
Partner Goal Setting
7. Accountability
8. Celebrate your successes!!
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Individual Partner Goals Plan
MVP
PRODUCTION GOALS
Target
Actual
Deadline
Weighting
ORIGINATION
CLIENTS BASE MANAGED
BILLABLE HOURS
REALIZATION
ETC.
QUALITATIVE GOALS
1. Head up the banking niche.
2. Delegate 100K of small clients to managers.
3. Mentor Susie Staffperson.
4. Put on a law firm dog and pony show.
TOTAL
100%
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Keys to Successful Strategic Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
Ya gotta’ wanna
Deal with negative people / COACH
Champion / COACH
Accountability / COACH
Less is better than more…
Don’t overburden busy client partners
SMART goals
Monitor progress / COACH
Incentives / COACH
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MVP
“Nothing energizes an
organization like speed.”
Roberto Goizueta
Chairman-Coca Cola
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QUESTIONS?
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The Rosenberg Associates
1000 Skokie Blvd. Suite 555
Wilmette, IL 60091
Phone: 847-251-7100
Fax: 847-251-4622
marc@rosenbergassoc.com
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